$$COUP eranings


We delivered strong Q1 financial results, including 40% year-over-year subscription revenue growth, positive non-GAAP operating income, and positive free cash flows,” said Rob Bernshteyn, CEO of Coupa. “On the business front, we expanded our customer base by adding blue chip and high growth customers, and we saw several marquee customers go live. We believe we are well positioned to deliver on our business and financial objectives for the fiscal year.

Had a GAAP loss again, and Non-GAAP net loss per share is expected to be between $0.14 loss and $0.19 loss per share.

Named a Leader in Gartner’s Magic Quadrant for Procure-to-Pay Suites for the third time in a row


and from another article…
Coupa, whose cloud-based software helps businesses control their spending, topped quarterly views late. Coupa lost 1 cent a share, nearly breaking even and defying views for a widening loss of 11 cents a share. Revenue climbed to $56 million.

Coupa also offered bullish guidance.

Coupa Software stock rose 1.4% late

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I don’t see COUPA hitting $1B revenue before 2023, or after another 5 years. Assuming modest dilution of 10% will basically get you close to 100m diluted shares outstanding, and even if they manage to get 25% net margin on $1B sales, it roughly translated into $2.5 EPS and today the company is trading at $55.

The problem with high growth companies are they are so richly valued, you have to completely ignore valuation to buy them.

Cheers for those who own already. These are the companies that goes into watch list for market correction.


I had invested in a Company called Cocnur which got bought by SAP a few years back for 8 Billion and the revenue multiple paid was almost 16 times . This is a very broad space and most of the spend management software is very outdated hence COUPA has a great massive opportunity in front of them to grab market share. They are a pure SAAS platform hence upfront marketing spend is huge but loooking ta the OP cash flow looks like that is getting normalized and of course that would mean some Net income to show soon. They have a very good client roster as well.

I have taken a nibble at COUPA last week and will watch how they grow their revenue and bookings.


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They are a pure SAAS platform hence upfront marketing spend is huge

The $1B run rate assume some serious growth for the next 5 years… considering they are guiding $235 for 2019. Also, note I have assumed 25% net margin, that means a significant reduction in Sales & Marketing, and GA.

I cannot invest assuming someone will take them out.

Good luck.

My point was not about investing hoping someone will take them out but the fact that there is enough opportunity for them to keep doubling every 3 years in this secular domain that cuts across all industries.